The news: Target is combining marketing, merchandising, and shopping tools to position itself as the go-to destination for holiday gifts, per Adweek.

The details: Key elements of the strategy include:

Marketing: Target’s “Academy of Giftology” holiday campaign features a fictional school where D’Arcy Carden and other characters offer advice on everything from last-minute shopping to budget-friendly gifts. Running across broadcast, streaming, audio, out-of-home, and social, the campaign marks the first time the retailer is incorporating interactive social content, creators, and real-world activations in its holiday efforts.

Merchandising: Target will offer more than 8,000 new holiday gifts, over half of them exclusive and thousands priced at $5 or less. It is also highlighting private labels and exclusive collaborations alongside national brands to showcase its differentiated assortment.

Technology: Target is combining AI-powered tools with traditional gift guides to simplify holiday shopping. It is testing Ask Target, a conversational AI shopping assistant, while offering curated gift guides for teens, babies, hosts, and teachers, holiday wish lists, and a digital kids catalog that recreates the experience of circling gifts in print.

Implications for retail: Target and other retailers need to give consumers compelling reasons to shop with them rather than default to Amazon and Walmart. That's no easy task given the two retail giants' online dominance that stems in part from their membership programs that encourage shoppers to consolidate spending. We expect Amazon to capture 42.2% of US ecommerce sales in the final two months of the year, with Walmart accounting for another 10.4%. That leaves Target and every other retailer competing for the remaining 47.4%.

Amazon isn't taking its dominant position for granted. It's preparing for a surge in holiday demand with plans to hire 300,000 workers, up 20% from last year. That’s a stark contrast to the more cautious hiring plans announced by other retailers.